Notes to SEFA
The accompanying schedule of expenditures of federal awards (the SEFA) includes the federal award activity of Providence St. Joseph Health (the Health System) under programs of the federal government for the year ended December 31, 2025, except for the University of Providence (formerly the University of Great Falls), the Institute for Systems Biology, and Providence Health System Housing entities, which collectively spent $76,733,282 in federal expenditures during the year. The information in the SEFA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR 200), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the SEFA presents only a selected portion of the operations of the Health System, it is not intended to and does not present the combined balance sheet, results of operations, changes in net assets, or cash flows of the Health System.
Expenditures reported on the SEFA are reported on the accrual basis of accounting. Such expenditures are recognized using cost accounting principles contained in the Uniform Guidance, Cost Principles of Non Profit Organizations (2 CFR part 230). Under these cost principles, certain types of expenditures are not allowed or are limited as to reimbursement. Negative amounts shown on the SEFA represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Health System has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. For the year ended December 31, 2025, the Health System had no expenditures in the form of noncash assistance and had no federally provided insurance in effect.
During the fiscal year ended December 31, 2025, the Health System processed the following amount of new loans under the Federal Family Education Loan Program (which includes Stafford Loan and PLUS Loan) and the Direct Loan Program. Since these loan programs are administered by outside financial institutions, new loans made during the year ended December 31, 2025 relating to these programs are considered current year federal expenditures, whereas the outstanding loans balances are not. The new loans made during the year ended December 31, 2025, are reported on the SEFA.